Can Microsoft Improve Yahoo?

Writing by Nick Stamoulis on Friday, 1 of February , 2008 at 9:23 am

(Source) The world’s top software company could boost its online presence dramatically if Yahoo accepts a $44.6 billion bid to be purchased.

I’m a stern believer in competition. I believe it improves the overall performance of the competitors and gives greater choices to consumers. But in the case of Yahoo!, it hasn’t been much of a competitor lately. Microsoft believes it can change that.

I find this interesting. There have been rumors of a Microsoft takeover of Yahoo! for a while now. Microsoft, however, has problems with its own search engine, Live. Why do you think it’s in third place?

But taking over Yahoo! would put Microsoft in first place and give the company a greater share of the search market altogether. Plus, Microsoft’s foray into PPC advertising could give the company additional clout, with or without Yahoo! Google’s rise to prominence is due partly to Google AdWords, which has filled the search giant’s coffers with untold billions of dollars, a huge boon to the company’s total portfolio. Some of the acquisitions and improvements that Google has made could not have been possible without it.

Is Microsoft banking on the same success? To be sure, if Microsoft did acquire Yahoo! it would have access to the second most popular search engine and the second most popular PPC advertising service. Combining Yahoo! Publisher Network with Microsoft’s own brand, which has recently struck a deal with the Wall Street Journal to display its advertising, could lead to Microsoft being the leader in online advertising. If that happens then the company could improve its search offerings. But say what is possible and what is probable are two different things. Even if improvements did come, it would be a long uphill climb. Then again, whether first or second in one’s industry, the bottom line is profitability. Maybe that’s Microsoft is looking at.

Category: Search Engines

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